Greater Johnstown Water Authority customers will not see a rate hike next year.
By a narrow margin, authority board members voted Thursday to restructure debt and borrow $5 million in lieu of raising water prices for the first time since 1998.
“We don’t want to raise rates unless we have to,” board member Mark Wissinger said.
The authority needs extra cash to meet debt obligations and to fund annual improvements for a system that serves nearly 22,000 customers.
Officials mulled rate increases ranging from 5 percent to 25 percent.
But on Thursday, board members rejected a proposal to refinance, borrow and also impose a 5 percent rate hike – which would have meant that an average customer paid about $1.25 more monthly.
Instead, on a 5-4 vote, the board approved a financing plan with no rate increase.
The move involves borrowing $5 million, refinancing a $1.4 million mortgage on the authority’s new headquarters and restructuring existing debt.
That plan, officials said, will lower annual debt payments and eliminate the need for an immediate rate boost.
But it also will mean that the authority will pay much more interest in the long term, a fact that did not sit well with some.
“I just think there could be other alternatives to issuing debt,” board member Jay Follansbee said. “There are costs involved with that.”
While the vote appeared to settle the issue, officials acknowledged that there is a chance that they may be forced to re-examine water prices next year if interest-rate projections do not pan out.
“We’ve made a decision tonight based on our best knowledge and information,” board member Don C. Hall II said during Thursday’s meeting.
Chris Kerr of RDM Inc., which manages the Greater Johnstown water system, endorsed the financing plan.
“I do think they picked a scenario that is a very viable option,” Kerr said.
Local News
Water authority votes against rate hike
- Local News
-
-
Richland manufacturer showcases expansion
Business and government leaders gathered Monday at a Richland Township manufacturing company to celebrate the expansion of its export business, made possible through some cooperative government programs.
-
New jury to hear Blair case
The 12 jury members and two alternates chosen nearly a month ago to decide the fate of Nicholas Adam Horner were excused on Monday by Blair County President Judge Jolene Kopriva.
-
Blogging with heart
Launching into the second week of American Heart Month, I'm looking at stories on the leading-edge treatment options and how local heart specialists are helping patients live longer.
-
Marijuana bust: Police seeking runaway seize dozens of pot plants
City police looking for a runaway juvenile stumbled onto a marijuana “grow operation,” seized more than 40 pot plants and arrested two apartment house neighbors.
-
Former speaker convicted
A jury on Monday convicted a senior Democrat in the Pennsylvania House of Representatives on all but one of six charges in the latest corruption trial stemming from a five-year investigation into the use of taxpayers’ resources for political purposes.
-
‘Dramatic’ Pa. budget cuts expected
Top state senators say they expect Gov. Tom Corbett to propose a budget plan today that relies on cuts in spending for education and social services to balance sluggish tax collections and the rising costs of pensions and debt.
-
ACRP seeks partners for neighborhood gardens
A few years ago, the Alternative Community Resource Program and its partners planted a garden alongside Napoleon Street in a move to fill both hungry stomachs and a need for neighborhood rejuvenation.
-
‘Hope for the future’: Workshops offer confidence boost to cancer patients
Chances are when you look good you feel better about yourself.
-
Police Roundup: Martindale man accused of trying to enter cars at Portage dealership
A Portage-area man has been charged with criminal attempt at theft after state police said he was discovered trying to enter three vehicles in the parking lot of Stager’s Chevrolet.
-
In brief: Fire destroys windmill turbine
Fire destroyed a windmill turbine at the Allegheny Ridge Wind Farm on top of the mountain in Blair County between Blue Knob and Lilly on Monday morning.
- More Local News Headlines
-
Police: Father Planned Deadly Fire for Some Time
US, UK Pressure on Syria; More Homs Violence
Raw Video: Mass Killer Wants Medal, Freedom
Few Answers in Death of Sons of Missing Utah Mom
Court Strips Contador of Tour De France Title
Runaway Goat Leads Police on Wild Chase
And the Winner for Best Super Bowl Ad Is...
Raw Video: Deadly Helicopter Crash in Australia
Raw Video: Smoke, Purported Gunfire in Syria
Romney Latest Poll to Join Let-me-explain Club
Blast Kills Husband of Missing Utah Mom, 2 Boys
Obama: US, Israel Will Work Against Iran Nukes
NJ Museum Finds 19th Century Recording
Snow Causes Disruptions in Much of Europe
Clinton: Vetoed U.N. Syria Resolution 'travesty'
Romney Picks Up Decisive Win in Nevada Caucuses
Gingrich Renews Vow to Campaign Until Convention
Romney Rolls to Easy Win in Nevada GOP Caucuses
Raw Video: Missing Family Found Alive in Ore.
Police Clear Tents From Occupy Site in DC
